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From Worship to Worldly Pleasures: Secularization and Long-Run Economic Growth

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Author(s)
Holger Strulik

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URI
http://hdl.handle.net/20.500.12424/3606007
Online Access
http://www2.vwl.wiso.uni-goettingen.de/courant-papers/CRC-PEG_DP_116.pdf
Abstract
In medieval times, most people identifi ed with religious values and aggregate income and productivity grew at glacier speed. In the 20th century, religion played a much lesser role in daily life and income and productivity grew at high and unprecedented rates. The present paper develops a simple economic theory of identity choice that explains both stylized facts as well as a period of secularization during which an increasing share of the population abandons religious identity for worldly pleasures and aggregate productivity takes off . An extension of the basic model investigates the Protestant reformation as an intermediate stage. Another extension introduces socially-dependent religious preferences, establishes the endogenous emergence of multiple, self-ful lling equilibria, and demonstrates how a social multiplier amplifi es the speed of transition.
religion; identity; economic growth; productivity; secularization; comparative development
Type
preprint
Identifier
oai:RePEc:got:gotcrc:116
RePEc:got:gotcrc:116
http://www2.vwl.wiso.uni-goettingen.de/courant-papers/CRC-PEG_DP_116.pdf
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